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Monday, March 27, 2017

Matthew Rozsa — He’s a Keynesian now: Donald Trump tells New York Times he wants to “prime the pump”

“We’re also going to prime the pump,” President Trump told Robert Draper of The New York Times Magazine. “You know what I mean by ‘prime the pump’? In order to get this [the economy] going, and going big league, and having the jobs coming in and the taxes that will be cut very substantially and the regulations that’ll be going, we’re going to have to prime the pump to some extent. In other words: Spend money to make a lot more money in the future. And that’ll happen.”

The spending won't be enough to pay for the cuts, and the cost will be shifted onto the lower 80%. Since 47% don't make enough to pay Federal income tax, this will be the final nail in the coffin for the so-called middle class.

Trump may well be Keynesian but until the GOP makes it up its mind it wants to be a party of government and expels the Libertarian Tea Party Congressional representatives Trump will repeatedly hit a brick wall.